Nutmeg is to become a part of JPMorgan Chase, in a move that will help support the bank’s plans to move into the UK retail banking market later this year.

The company, an online investment management company based in London, said it would “form the bedrock” for JPMorgan’s retail digital wealth management offering internationally over the long term, and complement the launch of Chase as a digital bank in the UK.

In January, JPMorgan announced that it would launch a new online bank, challenging the dominance of established high street lenders.

The Chase mobile app will compete with UK challenger banks such as Monzo, Starling and Revolut in an attempt to grab market share from established lenders.

Nutmeg, founded 10 years ago, currently has 140,000 clients and over £3.5 billion of assets under management (AUM.)

“I know I speak on behalf of the entire Nutmeg team when I say that to manage the investments of our clients and help them to achieve their financial goals is a privilege and an honour – one which we look forward to continuing for decades to come,” said Neil Alexander, chief executive, Nutmeg. “The products and services our customers currently enjoy from Nutmeg will be unaffected and, as the deal completes later in the year after approvals are received, JPMorgan Chase and Nutmeg will be working closely on further developing our offering to the benefit of our investors.”

JPMorgan has already hired 400 staff ahead of the launch of its digital bank, which will be headquartered in Canary Wharf.

Sanoke Viswanathan, chief executive of international consumer at JPMorgan Chase, said: “We are building Chase in the UK from scratch using the very latest technology and putting the customer’s experience at the heart of our offering, principles that Nutmeg shares with us. We look forward to positioning their award-winning products alongside our own and continuing to support their innovative work in retail wealth management.”

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